US Sentiment Policy Under Trump: Is the Fed Entering the Game? | 08.16.24

• Trump Defends Right to Submit at FedMonetary policy

• Historical Beispiele said: Politische Einflussnahme birgt Gefahren
• The Fed has a legitimate rejection of the interest rate

The former American president Donald Trump The debate over the suspension of the Federal Reserve is new, which acquits Jerome Powell of his own criticism of the Fed. Wall Street is on the alert: finally gilded a politically influencing independent US nut bank as guarantor of a stable monetary policy.

Trump will Mitspracherecht bei Fed-Entscheidungen

So let Trump hold a press conference, because he will try to defeat the Fed Money Policy with positive results. “I think the president has chosen a right of speech, as good as.” Trump shows his business sense in this context. “In my autumn a person has earned money, the war is hereafter, and I have a better instinct as in fallen fallen fun, which in the Federal Reserve or as a Vorsitzender lasts too long.” There is a fact that the current Führung is not so well suited to the economy with its re-expansions. This American president would have recognized the criticism of the American Fed chairwoman Jerome Powell – and that is what the ex-president Trump waged a personal war against, when Powell was the Fed director in 2018.

Since 2021, the prosperity of a strong inflation rate has been greater than the offensive guidance of the Fed, EZB, Bank of England & Co. Market observer examines the party with the first sentence sensing phase during the Fed meeting on September 18. The US sentence corridor is on the Fed sentence letter of 5.25 and 5.5 percent on July 27, 2023.

h2 class=”h4″>Die wechselhafte Beziehung zischen Politik und Fed

The path of the Federal Reserve in the united war is a longer historical process. The power of the Federal Reserve Act of 1913 by the US Secretary of the Treasury and the US Secretary of the Treasury was part of the Führungsgremiums of the Fed. The inflow of the Fed during the political war in the development phase of the US Central Bank is nevertheless unacceptable. How Stephen Slivinski, one of the leaders of the Editor at the Federal Reserve Bank of Richmond, organized the “Forbes” party, “exercised Congress and the executive power by merging the Fed with its strong influence”. The members of the Finanzministerium and the Fed were marked in 1951 as a separate Wendepunkt in the Richtung Autonomie. The gilded policy of the Fed is a separate factor for the economy, which will have a political influence on the economy.

Stagflation of the 1970s as abschreckendes Beispiel

Historically, this trend is notorious, a monetary policy instability by hindrance. The “stagflation” – the emerging economies of stagnation and inflation – of the 1970s are one of the main policy instruments of the Fed-Zinspolitik, which are other people who exercise a political influence. The time point of the Fed is under the rule of President Richard Nixon. The Republican took up the fight with the Fed chairmen Arthur Burns, the Geldpolitik in the vault, a Wirtschaft for the Wahlen in 1972. Nixon has taken the pressure on himself: “I respect my independence. I think it is a disbelief that the Schluss comes, that my attention is the right sin”, with “Forbes” from the leaked Nixon-Tonbanden seat.

Nixon’s power over inflation and stagnation in the 1970s of the last century, which can occur as “stagflation”. This criticism, which did not change during the oil shock of 1973, could now be confronted with the main meaning of Burns’ Nachfolger Paul Volcker in 1979. The so-called “Volcker shock” with Leitzinsraten of over 20 percent ensure that a number of major problems arise in the execution of credit agreements, which can cause high inflation that can be pressed to an effective economic end.

Finance expert Cox warns of political influence on the Fed

Jamie Cox, CEO of Harris Financial Group, is one of the views, the Volckers masses are notoriously unwilling to budge the Fed. “If it’s used, there are a number of presidents who are now going to have a future that is going to be disrupted,” Cox warned. There is concrete that the Fed has been through a political crisis, a quick and necessary divorce to hit: “If the Fed has to hit divorces, it’s to beat inflation, it’s to deal with a global pandemic, it’s to deal with a deflationary wave, it’s like a credit crunch in the world of a depression, but in the low light a fragment of a crisis that is bitten by the crisis dies.”

Does Trump even dare to accept the Fed-Unabhängigkeit?

Given Trump’s criticism of the Fed’s independence in a steady state, the power of presidents over monetary policy has begun. “The chairman of the Federal Reserve has taken other support measures, the Senate can do better,” says Jamie Cox of the Harris Financial Group. After the Humphrey-Hawkins Full Employment Act of 1974 was outlined, the Fed Congress was published in 1974.

Financial analyst Peter Conti-Brown warned that Fed presidents would be given a rule of law that could increase power through his higher court. Cox has a problem with the financing of the federal government, there is talk of a turbulent enterprise. The one-sided presidential election could strengthen the Fed’s role in judicial oversight of monetary policy stability.

That opinion also seems to be Vice President Kamala Harris. The Democratic presidential candidate of concrete after Trump’s exits by the Fed, it was no longer a matter for the US Nut Bank, so it would be that the president would be selected.

Editorial staff finanzen.ch